Is International Bancshares Corp. overvalued or undervalued?

As of 7 August 2025, the valuation grade for International Bancshares Corp. has moved from fair to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 15, which is lower than the peer average of approximately 16.50, and an EV to EBITDA ratio of 11.66, also favorable compared to peers like Columbia Banking System, Inc. with a ratio of 13.84. Additionally, the company's ROCE stands at a robust 18.14%, suggesting efficient capital use.
In terms of stock performance, International Bancshares Corp. has delivered a YTD return of 12.33%, slightly outperforming the S&P 500's return of 12.22%. However, over the longer term, the company has lagged behind the S&P 500, particularly over the 10-year period, where it returned 147.69% compared to the index's 231.64%. Overall, the valuation metrics and recent performance suggest that the stock is positioned favorably in the market.